ENG-1985 — Page 217

LAND, PUBLIC WORKS AND UTILITIES

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supply companies are investor-owned and do not operate under franchise. The government monitors the financial arrangements of the companies through the published Schemes of Control. Under these schemes, the long-term financing plans of the companies and any proposed tariff changes require the approval of the Governor in Council.

In March, the government published a report by an American firm of consultants which had been employed to assess the adequacy of the government's arrangements for moni- toring the supply companies. The consultants concluded that the government's monitoring system has been adequate to ensure compliance with the terms of the Schemes of Control. The consultants also recommended a number of steps to strengthen the monitoring process, to ensure that this process keeps pace with the fast development of Hong Kong's electricity supply system and with the aspirations of consumers. These recommendations are being considered by a special working party responding to the Secretary for Economic Services. One recommendation which the government immediately endorsed was that consultants would be retained to examine the technical aspects of future financing plans submitted by either supply company.

Generation of electricity in Kowloon and the New Territories is carried out by CLP in conjunction with three associated companies, Peninsula Electric Power Company Limited (PEPCO), Kowloon Electricity Supply Company Limited (KESCO) and Castle Peak Power Company Limited (CAPCO). The combined capacity of the four companies at the end of 1985 was 3 924 MW. PEPCO, KESCO and CAPCO are each financed 60 by Esso and 40 per cent by CLP.

per cent

Operation of the power stations owned by the associated companies is in the hands of CLP, which also has its own generating capacity at Hok Un ‘B' (total 260 MW). PEPCO owns the generating plant at Tsing Yi ‘A' (720 MW), Tsing Yi 'B' (800 MW) and Hok Un 'C' (240 MW). KESCO owns 504 MW of gas turbine capacity, together with the Castle Peak 'A' Power Station, consisting of four 350 MW coal-fired or oil-fired dual fuel units.

The Castle Peak 'B' station, adjacent to the 'A' station, is owned by CAPCO. On completion in 1990, it will comprise four 660 MW dual-fired units. The first unit is due to be commissioned in early 1986. The Castle Peak 'A' and 'B' power stations, with an ultimate capacity of over 4 000 MW, will be the largest power station complex in Southeast Asia. The use of coal as the primary fuel for both stations will benefit consumers by significantly reducing operating costs.

Transmission of electricity in the CLP system is carried out at 400 kV, 132 kV and 66 kV. Distribution is effected mainly at 33 kV, 11 kV and 346 volts. The supply is 50 hertz alternating current, normally at 200 volts single phase or 346 volts three phase. For bulk consumers, supply is available at 33 kV and 11 kV.

Work continued during the year on the development of an extra high voltage transmis- sion system at 400 kV to transmit power from the Castle Peak Power Stations to the various load centres. This 400 kV network, when complete, will comprise two transmission rings: a primary ring encircling the New Territories and a second ring encompassing a large part of the Kowloon peninsula. The primary ring, consisting of 90 kilometres of double circuit overhead lines and four extra high voltage sub-stations, at Lei Muk Shue, Tsz Wan Shan, Tai Po and Yuen Long, was completed in late 1985. The Kowloon ring is due for completion in 1988 and will consist of 22 kilometres of cable circuits, linking the major sub-stations at Tsz Wan Shan, Tai Wan and Lai Chi Kok.

HEC's Ap Lei Chau Power Station, which started commercial operation in 1968, has an installed capacity of 935 MW. It consists of two 60 MW and six 125 MW oil-fired generating units, together with two gas turbines with a combined capacity of 65 MW.